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2. (Voluntary provision of a public good) This question continues the example in Lecture 10, slide 10. The cost of building a park is C(g)

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2. (Voluntary provision of a public good) This question continues the example in Lecture 10, slide 10. The cost of building a park is C(g) = 10g, where g is size of a park in square miles. Total benefits from the park for each individual is: B = 39 - 292. There are 10 identical individuals in the community. In class, we showed that under voluntary contribution, it will not be an equilibrium for the 10 people to provide the efficient amount of the public good (because of free riding). In this problem, we are going to walk you through steps to find what is the equilibrium level of contribution. Before you do this, take 10 minutes and ask yourself how you would find the outcome assuming everyone was making the same contribution. Then, see how we suggest you proceed. * a) Show that everyone contributing 0 will not be the equilibrium. (Hint: use reasoning similar to what we did in class.) (1 point)

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